Unemployment falls sharply to 9.0% in January, 36k jobs added

The Bureau of Labor Statistics reported that the unemployment rate dropped sharply to 9.0% in January with 36,000 jobs added, surprising many economists. Private sector employment increased by 50,000 jobs, while government cut 14,000 jobs.

Let’s breakdown the numbers:

The unemployment rate for high school drop outs was 14.2%, down from 15.3% last month.

4.2% of college graduates were unemployed, down from 4.8% the previous month.

The jobless rate for high school graduates was 9.4%, down from 9.8%.

8.8% of men 20 and over were unemployed, down from 9.4%.

Women 20 and over had an unemployment rate of 7.9%, down from 8.1%.

25.7% of 16 to 19 year olds were unemployed, up from 25.4% last month.

Jobless rate among whites was at 8.0%, down from 8.5% last month.

15.7% of blacks were jobless, down from 15.8% the prior month

While many economists were surprised by the sharp drop in the unemployment rate for January, there is some speculation as to what role the harsh winter weather in many parts of the country might have played in the numbers.